Economic headwinds on the horizon: Tariffs, supply chain challenge broadcast industry

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The broadcast technology sector faces significant economic pressures in 2025, with potential tariffs and ongoing supply chain constraints threatening to reshape equipment manufacturing and purchasing patterns across the industry.
The potential tariff impact comes as many broadcast organizations face tightening budgets and increased demands on their technical infrastructure, which compounds an industry already stretched by two decades of cost-cutting measures. Devoncroft’s recent research suggests that organizations must shift from superficial reductions to more fundamental efficiencies to remain viable while maintaining quality.
Industry executives report to NewscastStudio in a recent Industry Insights roundtable that new tariffs could substantially impact both manufacturers and buyers of broadcast equipment. These factors could potentially disrupt existing contracts and force companies to develop alternative cost-management strategies.
“Most broadcast equipment manufacturers rely heavily on components from overseas so tariffs on imported goods will increase the final product price,” said Suzana Brady, SVP of worldwide sales and marketing for Cobalt Digital. “Major broadcast industry players are already expressing concerns that their existing multi-year contracts with their customers will prohibit them from buying equipment at higher prices.”
Brady noted these pressures would cause pressure on all industry manufacturers and diminish already thin margins across the supply chain.
“Content must be delivered to multiple destinations, in various formats, while keeping up with frequently changing delivery specifications. Meanwhile, budgets remain flat or are even shrinking in some cases,” said Jon Finegold, chief marketing officer of Signiant, noting that companies must deliver content to more platforms and formats than ever before while often working with reduced resources.
Supply chain adaptations
These economic pressures force organizations to reconsider their technology investment and deployment approach.
“Organizations may need to adopt creative strategies to balance these added costs and continue delivering high-quality content while maintaining profitability,” said Geoff Gordon, VP global marketing at MainConcept. “Potential approaches include local sourcing and production, diversified revenue streams, utilizing user-generated content, and optimizing operational efficiency.”
As budgets shrink, companies are rethinking their technology stacks.
Devoncroft’s research emphasized that unlocking budgets for new investments requires clear ROI metrics. Vendors who help buyers understand costs and tangible business outcomes will gain a competitive edge in this economic environment.
“When technology buyers tighten their budgets, the impact on suppliers is significant,” said Bea Alonso, strategic marketing lead at Projective. “To navigate this, vendors must stay laser-focused on delivering what customers truly need and value.”
The combination of potential tariffs and budget constraints is particularly challenging for technology vendors, with the added complexity of juggling on-premise, cloud and hybrid approaches.
“OpEx was never really widely adopted in the media industry, and we see a firm move back to CapEx. The big OpEx cloud models work well in different industries but do not suit the unique demands of large media files and streams across workflows, resulting in extremely high costs. Media businesses are realizing that just buying the kit they need is actually a significant cost saving, and the trend will be firmly towards on premise implementations,” said Sergio Ammirata, founder and chief scientist, SipRadius.
Market consolidation incoming
These overall economic pressures may accelerate industry consolidation, according to several executives.
Dan Goman, CEO of Ateliere Creative Technologies, noted mergers and acquisitions as a likely response to market conditions.
“The media and entertainment industry is poised for a significant surge in mergers and acquisitions as companies seek to enhance competitiveness and adapt to technological advancements,” Goman said. “The fragmented vendor landscape faces pressure as M&E companies streamline operations and reduce the number of vendors they engage with.”
Kristan Bullett, CEO of Humans Not Robots, echoed this view, noting, “Just as we’ve witnessed consolidation among broadcasters and operators, we can expect a surge in mergers and acquisitions among vendors. In a landscape where survival is paramount, mergers will increasingly become a strategic necessity.”
Despite these challenges, some industry leaders see positive indicators for 2025.
“Cautiously optimistic, 2024 has been a challenging year, but signs of growth are beginning to emerge,” Bullett said. “There is a noticeable increase in activity from broadcasters, operators, and telcos, many of whom now have clearly defined budgets.”
“Heading into 2025, I feel mildly optimistic, as there are strong indicators that the industry is stabilizing, which is a positive shift from recent months,” said Gordon.
“The media technology market has grown increasingly fragmented in recent years, and consolidation could bring much-needed stability and balance,” said Alonso.
Efficiency focus
“The biggest challenge for broadcasters in adopting new technologies is that the tools required for modern content consumption are in many cases different from those that built the foundations of traditional broadcasting. Broadcasters now need flexible, software-based solutions that integrate seamlessly with their existing infrastructure—a complex and challenging task and yet a tremendous opportunity to simplify technology infrastructure while ultimately delivering material cost savings for broadcasters,” said Jon Wilson, president and COO at Grass Valley.
The economic environment is pushing many organizations to seek greater operational efficiency. Finegold noted that broadcasters are “rethinking their technology stacks—seeking modern, adaptable solutions that simplify workflows and maximize efficiency.”
This focus on efficiency extends to content production and distribution strategies. Companies are exploring ways to optimize their operations while maintaining quality standards.
“As these companies strive to implement operational efficiencies, it’s clear that a more cohesive approach is needed,” Alonso said.
“Partnerships become a key asset in finding new creative and cost-effective ways to reach new audiences through the merging of technologies and resources,” said Brady. “Given the fast-paced media production environment, partnerships shorten time to market while reducing costs and optimizing the bottom line.”
Some organizations are turning to advanced technologies to achieve these efficiencies. AI-driven solutions are emerging as one way to manage costs while meeting increased content demands. According to Goman, tools like AI-powered deduplication allow broadcasters to “quickly tailor content to varying platform specifications while keeping storage costs low.”
However, AI in media workflows requires overcoming integration challenges and the lack of tailored solutions.
The combination of economic pressures appears likely to drive significant changes in how broadcast technology is manufactured, purchased and deployed.
As the industry enters 2025, companies across the sector are adapting their strategies to navigate these challenges while maintaining service quality and meeting evolving content delivery demands.
These adaptations may reshape the industry landscape, potentially accelerating consolidation and forcing vendors and buyers to develop new technology deployment and content delivery approaches. The effectiveness of these strategies will likely play a crucial role in determining which organizations successfully navigate the current economic environment.
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tags
Ateliere, Ateliere Creative Technologies, Bea Alonso, Cobalt Digital, Dan Goman, Devoncroft, Geoff Gordon, Grass Valley, Humans Not Robots, Jon Finegold, Jon Wilson, Kristan Bullett, MainConcept, Projective Technology, Sergio Ammirata, Signiant, SipRadius, Suzana Brady
categories
Broadcast Business News, Broadcast Equipment, Broadcast Industry News, Heroes